H Econ March Assessment Revision

Scarcity refers to:

• The lack of consumer demand for goods and services.

• The lack of consumer demand for goods and services.

• The fundamental economic problem of having limited resources to meet unlimited wants.

• The surplus of goods in a competitive market.

Which of the following is NOT a method of reducing scarcity?

• Increasing the efficiency of resource use.

• Ensuring that all resources are privately owned.

• Expanding production through technological advancements.

• Promoting sustainable resource management.

Which of the following is an example of a free good?

• Bottled water.

• A designer handbag.

• Electricity.

• Clean air in an unpolluted environment.

Which statement best describes allocative efficiency?

• Producing goods at the lowest possible cost.

• Ensuring that resources are used to produce the goods and services most desired by society.

• Maximizing the production of capital goods over consumer goods.

• Minimizing government intervention in resource allocation.

The price mechanism allocates scarce resources by:

• Ensuring all individuals receive equal shares of resources.

• Using supply and demand to determine prices and resource allocation.

• Setting prices based on the average cost of production.

• Allowing the government to control production.

What is the typical shape of the long-run average cost curve?

• A straight, upward-sloping line.

• A U-shape due to economies and diseconomies of scale.

• A horizontal line indicating constant costs.

• A downward-sloping line representing ever-decreasing costs.

Which of the following is NOT an example of a supply-side policy?

• Reducing business regulations to encourage entrepreneurship.

• Increasing interest rates to reduce inflation.

• Cutting income tax to incentivize work.

• Increasing investment in education and training.

Which of the following is NOT a stage of the business cycle?

• Boom.

• Recession.

• Inflation.

• Recovery.

National income statistics are used for all of the following EXCEPT:

• Assessing the impact of economic policies.

• Setting the exchange rate for the currency.

• Comparing the standard of living over time.

• Measuring the economic performance of a country.

Which of the following is a reason for shifting from direct to indirect taxation?

• It reduces the overall tax revenue collected by the government.

• It eliminates the need for government spending.

• It encourages savings and investment by reducing income tax burdens.

• It ensures that only high-income earners pay taxes.